• New FTC rules ensure easy cancellation of online subscriptions, banning hidden buttons and misleading information.

• The rule aims to prevent companies from trapping people into subscriptions or tricking them into signing up.

• Consumers can now make informed choices with clear terms and quick cancellation options.

It took a while, but the Federal Trade Commission (FTC) has just made it easier to remove unwanted subscriptions. No more calling obscure call centers, searching for hidden cancel buttons, or jumping through hoops.

The FTC’s new “click to cancel” rule applies to almost all subscription services, regardless of medium. It will also prohibit companies from misrepresenting information about their services, prices and the cancellation process. Consumers can now make informed choices thanks to clear and concise terms.

Here’s why the FTC introduced the new rules

FTC Chair Linda Khan summed up the new rules best in a thread on X (formerly Twitter). Businesses can no longer charge people who didn’t know they signed up for a subscription, and sellers must make it easier to cancel a subscription. If someone registered online, they should be able to cancel online with a single click. No hidden buttons.

The FTC has received thousands of complaints about questionable subscription practices, and those numbers have steadily increased over the past five years. The FTC fined Adobe earlier this year for its exorbitant cancellation fees and sued Amazon last year for intentionally preventing customers from canceling their Prime subscriptions.

Here’s What “Click to Cancel” Means to You

This is something the FTC has been working on for several years. California recently passed similar regulations for subscriptions, and the European Union has historically been tough on questionable subscription practices, with Germany passing stricter legislation several years ago.

The new rules are shown in a graphic Khan published on X.

• Important information should be truthful and easy to find.

• People need to know what they are accepting.

• There must be a way to cancel as quick and easy as registering.

  • If someone registered online, click to cancel.

  • If they registered in person, click to cancel or by phone.

Click-to-undo is a step in the right direction to modernize the rules for the digital age. The next time you consider signing up for a new service don’t forget the “click to undo” rule.